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you are considered an investment with the following cash flows. If the required rate of return for that investment is 13.5% should you accept it
you are considered an investment with the following cash flows. If the required rate of return for that investment is 13.5% should you accept it based solely on the internal rate of return
Year. Cash flows
- -$12000
- $5500
- $8000
- -$1500
A. yes, because the IRR exceeds the required return
B. yes, because the IRR is a positive rate of return
C. No, because the IRR is less than the required return
D. you cannot apply the IRR rule in this case because there are multiple IRRs.
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